Which of the following types of information is a focus of the primary objective of financial reporting?

Group of answer choices

a. Information that helps a debt investor decide on inquiring a companys bonds.

b. Information that helps a manager assess the efficiency and effectiveness of operations.

c. Information that helps a internal auditors determine areas of highest risk within the company.

d. Information that helps a companys board of directors decide whether the CEO should receive a bonus.

Caramel Company has the following transactions in the current year. Assuming that all of the transactions are material, which of them will most likely have NO effect on current year net income?

Group of answer choices

a.The determination that intangibles acquired through the purchases of a small start-up company were worthless.

b. The sale of a factory building that was contributed by a shareholder in the prior year.

c. The write-off of an account receivable.

d. The payment for the settlement of a lawsuit that had not been accrued in the previous year.

Which of the following is NOT an example of a judgment in accounting for inventory is ___________.

Group of answer choices

a. the choice to use LIFO rather than FIFO

b. the amount of overhead to include in the cost of inventory

c. the amount paid to a supplier for raw materials

d. the market value used to determine whether a write-off is required under the lower-of-cost or market